World Liberty Financial Loses $125 Million on Ethereum Sale

World Liberty Financial (WLFI), a decentralized finance (DeFi) platform backed by President Donald Trump and his family, recently faced a significant financial setback. The platform sold 5,471 Ethereum (ETH) for approximately $8.01 million on April 9, resulting in a staggering $125 million loss based on its prior investment. This loss was due to the decline in Ethereum’s price, with the selling price of $1,465 per token being significantly lower than the average purchase price of $3,259 per token. WLFI had initially invested $210 million to purchase 67,498 ETH, highlighting the volatility of the cryptocurrency market, especially for large positions like WLFI’s.

In addition to the ETH sale, WLFI withdrew Ethereum from Aave, a decentralized finance platform, where it had been earning yield or used as collateral. The funds were then transferred to CoW Protocol, a decentralized exchange aggregator, and swapped for USDC. This transaction suggests that WLFI may be reducing its market exposure or preparing for future investments. The timing of WLFI’s ETH sale coincided with Ethereum’s recent struggles in the broader cryptocurrency market. Ethereum, the second-largest cryptocurrency by market capitalization, has faced a significant drop in value, losing the $2,000 support level amidst a larger market sell-off. As of the latest data, ETH was trading at around $1,484, down approximately 20% over the past week. This price decline has contributed to WLFI’s massive losses.

Despite the recent loss, WLFI’s portfolio showed some positive movement earlier in the year. According to the Q1 2025 Cryptocurrency Market Report, the platform saw a 13.41% increase in its portfolio, growing from $72.82 million to $82.51 million. This growth was driven by a mix of cryptocurrency assets, but the Ethereum holdings remain a significant part of its portfolio. WLFI has continued to navigate towards Ethereum despite the recent downturn. In February, WLFI provided public support for ETH by stating that the first son, Eric Trump, recommended accumulating ETH, which strengthens the family decisions regarding ETH. Earlier in the year, WLFI had purchased another $10 million of ETH units in addition to its original position. Although WLFI has experienced a steep discount recently, it has continued to have a significant commitment to Ethereum.

At this time, WLFI has lost 2.5% of its total portfolio valued at $97.15 million. Ethereum continues to be one of the largest assets in the portfolio at roughly 5.3% of total portfolio value. The overall decline of the portfolio is an indication of the overall decline in cryptocurrency values and, more directly, the volatility of Ethereum is impacting WLFI. Therefore, WLFI’s recent loss is indicative of the risks associated with taking large positions in volatile assets such as Ethereum. Although in the past the platform has shown resiliency, its current situation highlights the volatility of the crypto market and the challenges of positioning itself given an instability market.